Rates & InterestAPR
Annual Percentage Rate (APR)
The true annualized cost of borrowing, reflecting the nominal interest rate plus lender origination fees, points, and closing costs.
📚 Financial Knowledge Base
Financial Industry Glossary & Underwriting Guide
Master essential home mortgage, auto financing, interest rate, and underwriting terminology with interactive calculators, mathematical formulas, and practical lending guidelines.
Terms Starting With "A"
Showing 6 definitionsRates & InterestAPY
Annual Percentage Yield (APY)
The real rate of return earned on a deposit or investment over one year, taking into account the power of compound interest.
Rates & Interest
Prime Rate
The benchmark interest rate that commercial banks charge their most creditworthy corporate borrowers.
Rates & InterestSOFR
Secured Overnight Financing Rate (SOFR)
A benchmark interest rate based on the cost of borrowing cash overnight collateralized by US Treasury securities, replacing LIBOR.
Rates & InterestBPS
Basis Points (BPS)
A standard unit of measurement for interest rates and financial percentages equal to 1/100th of 1% (0.01%).
Rates & Interest
Balloon Payment
A significantly large, lump-sum payment due at the end of a short-term or partially amortizing loan.